Airlines Spend $25bn Annually on Payment Processing – IATA

The aviation body says rising payment costs underscore the need to integrate financial systems into digital transformation as AI, biometrics and modern airline retailing reshape the industry

The International Air Transport Association (IATA) has disclosed that airlines spend more than $24.5bn annually processing payments, warning that the rising cost highlights the need for the aviation industry to make digital transformation more financially sustainable.

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IATA’s interim Director General, Chief Financial Officer and Senior Vice-President of Corporate Services, Sandrine Le Borgne, revealed this on Wednesday at the opening of the IATA World Financial Symposium and World Passenger Symposium in Macao.

The event brought together aviation industry leaders to examine developments in airline retailing, payment systems and digital identity, as technology continues to reshape how passengers discover, book and pay for travel services.

Le Borgne said airlines must look beyond the convenience of digital payments, artificial intelligence and biometric identification to ensure that these innovations reduce operational costs, improve efficiency and strengthen financial resilience.

“Today, a traveller can use AI to plan a trip.

They can pay with a digital wallet and use biometrics for a more seamless journey at the airport. The challenge now is realising the value that these innovations can create to make travel more efficient and improve financial resilience,” she said.

The association noted that the growing use of artificial intelligence assistants and automated agents to search for, compare and purchase travel services presents both opportunities and challenges for airlines.

While such technologies could significantly change how passengers plan and book their journeys, IATA stressed that carriers must retain control of their data, commercial relationships and the accuracy of information provided to customers.

Le Borgne also identified the transition to modern airline retailing through the Offers and Orders framework as central to the industry’s digital transformation.

She disclosed that seven airlines were already using or implementing Orders, while more than 20 others were expected to follow from 2027. Technology providers have also committed more than $1.7bn to developing Offers and Orders solutions.

“Offers and Orders are the foundation; AI is the accelerator. They need to move forward together as AI increasingly reshapes how travel is discovered, sold, and serviced,” she said.

IATA further argued that airlines must incorporate financial processes into their digital transformation plans from the beginning rather than treat them as secondary considerations.

Although digital wallets and emerging payment methods offer passengers greater convenience and choice, the association warned that airlines must assess their implications for transaction costs, cash flow and financial risks.

Le Borgne said the industry’s annual payment-processing expenditure made it essential for financial considerations to be included in decisions about new technologies.

“With airlines spending more than US$24.5bn annually to process payments, these effects must be considered together,” she said.

She also called for reconciliation, settlement and revenue accounting to be integrated into the transition to Offers and Orders, arguing that the process should eliminate existing operational complexities rather than simply transfer them to digital platforms.

Beyond payment systems, IATA identified biometrics and digital travel credentials as important tools for improving airport procedures and making international journeys more convenient.

However, the association observed that the benefits remain limited because many biometric solutions operate independently within individual airports or countries.

This fragmentation makes it difficult for passengers to enjoy a consistent biometric experience throughout international journeys, highlighting the need for greater coordination across the aviation industry.

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IATA’s position reflects the growing challenge facing airlines as they adopt new technologies while managing the financial, operational and security demands of a rapidly changing travel market.